Part 1: Matt Moynahan and Harold Sinnott discuss OneSpan's mission to enable secure, compliant, and refreshingly easy digital agreements
Matt Moynahan: OneSpan has been around 30 years, publicly traded for 20 years on the NASDAQ. And we are a pioneer in the identity verification and authentication space. We also have a part of our business around e-signature. And I got very excited to come about a year ago to go help this company apply everything it's done over the past 30 years for Web 1.0 and 2.0 to this new environment of Web3.
Now, OneSpan is very unique in the sense that everything we do, whether it's on the cybersecurity side or the e-signature side, it touches end users like you or me. Many people have used us in mortgage financings, new account openings, and so I think we've got a very unique opportunity to take everything we've done in the past and apply it to really be one of the first end user-centric security companies out there. And as we know in Web3.0, it's all about the end user. It's all about the consumer. And the history of enterprise security hasn't been around focusing on the customers. So, I'm very excited by this.
We're very fortunate. Clients trust us. We've been around for some time. We have a wonderful installed base of some of the most sophisticated and discriminating financial services companies on the planet. We're global and we've been dealing with this environment since we were born.
We grew up in the global banking industry, which is used to, from day one, the regulatory and compliance environment. So our customers and other customers look to us to help them understand how to implement technology while being compliant. As far as the global transactions, again, everybody wants to go online, have more digital products, get new customers and conduct business globally. And whether it's a wire transfer or a loan, I think we're there as a trusted advisor for our clients, to help them navigate that environment. So it's part of what we do.
Part 2: Matt Moynahan and Harold Sinnott discuss why continuous identity verification and authentication is critical to business today
Matt Moynahan: We are a pioneer in the identity verification and authentication space. And that's super important. When you think about it, most of the identity infrastructure out there in the world is based around employees. Enterprises, for the most part, know who their employees are. But it's getting incredibly complex. There's only really two types of users in the world; known and unknown.
Whenever an enterprise goes and tries to get a new customer, that customer is unknown to the enterprise. So you have to put up certain checks to make sure that that person is who they are and they're not a nation state up to no good or a criminal organization. Same thing with onboarding a vendor.
And so being an expert in identity is critical for this new world we live in, because when they become a customer, you want to make sure that it's the person you're interacting with. After they become a customer, they become a known entity. And it's really important to deliver a user experience to that known customer that makes them want to stay with you and be loyal. And so, the new age of security to me is to weave seamlessly security through the business process from the time that someone is an unknown customer, to becoming known, through the life cycle of that relationship with the customer until they may be off board. And so that's what we're up to. And I think our proud history of 30 years really puts us in a unique situation to deliver against that value proposition.
Part 3: Matt Moynahan and Harold Sinnott discuss the opportunities and challenges of Web3
Matt Moynahan: Web1 was really a static environment. You can think of Web1 being in the early days of online banking, for instance, where you could go and check your balance. That would be it. But that was pretty revolutionary 20 years ago, right? Web 2.0 became more dynamic. Not only can you go check your balance, but you could transfer funds, you can Venmo, right? Web 3.0 is really this decentralized blockchain type of world where people talk about self-sovereign identity.
But put that aside for a second, we're right smack dab in the middle of the transition from 2.0 to 3.0. What I call the 2.5 phase, which has basically all the implications of the first Web 1.0, Web2, and that need to be addressed before companies and enterprises can go to Web3.
What do I mean by that? Every single company wants to have a greater percentage of their revenue come from online; digital products. Those digital products aren't just putting a book in a shopping cart, or a digital file or a music file in a shopping cart, they're getting much more complex.
So you have now... You can do home loans online, you can apply for mortgages, you can do refinancing, student loans. The types of products that are coming are far more complex, which makes the attack surface broader. And if there's one thing that hackers like to do, is to attack complexity. It opens up seams in the threat landscape. And so that's number one; the security threats are exponential as more businesses move more products and processes online.
The regulatory threats are significant. There's the explosion of local data and data privacy and identity regulations. That's incredibly important. I mean, you cross borders, the regulations change. So, doing business globally on the internet is becoming more complex.
And then lastly, the user experience is under attack. It's very different just dragging and dropping something into a shopping cart. You need to engage, particularly in this post-COVID world, with enterprises in a way that really maintains user experience. And I think we've all been through a purchase process where if it's not smooth, you will walk away from that transaction. The completion rates won't be there. And so it's this mix of complexity, but still have the demands of great user experience. And that's where the tension is coming in, and security has to be seamlessly interwoven throughout all of that.